Dell Swot

Dell INC

Executive summary

Is the dell's direct model working? Last year, the company gave up the PC market share lead to Hewlett-Packard. Dell was the only top computer company to lose worldwide PC market share. This analysis identified Dell's problems and provided strategic moves for the PC maker firm.

Company Background

The company was founded in 1984 by Michael Dell, now the company is one of the world's largest suppliers of personal computers and related products. It designs, develops, manufactures, markets, and services personal computers, servers, printers and other products. The company primarily operates in the Americas. It is headquartered in Round Rock, Texas and employs about 66,000 people. Dell's simple concept focus on selling personal computer systems directly to the customer in that way Dell could best understand their needs, and provide the most effective computing solutions to meet those needs. The company announced plans to begin selling through retail stores.

Vision:

Dell's vision is to be the most successful computer company in the world at

delivering the best customer experience in markets we serve.

Recommendation for the vision statement:

A vision statement focuses on the on how the world would be ideal without mention the organization. In this vision Dell mention its product, I recommend a vision that would say: There will be a personal computer for each individual in the world.

Justification:

Dell aspire that every individual in the world owns a computer. Computers are part of everyday life in the twenty-first century. Computers have changed the way humans work and live. We live in a world where technology is rapidly increasing, and new discoveries are being made every day. Computers have become a common piece of equipment in homes and business all over the world.

Mission

"With the power of direct and Dell's team of talented people, we are able to provide customers with superb value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use".

Recommendation:

Mission statement indicates how the company will achieve its vision; I will stay with Dell's mission since shows its core competencies and operating philosophies. However, I will change the word going direct. Dell is now selling PCs in one retail store.

Justification:

With the power of customer, and talented staff, and high quality the company, will achieve its vision to see every person in the world possessing a computer. The Purpose of this mission is provide customers with superb value technology; the core of the business is provided high quality, relevant technology, customized systems and the values are superior service and support, easy to buy, easy to use

SWOT Analysis

Internal-strengths and weaknesses

Strengths:

Dell is the second world largest PC market. The company holds a market leader positioning in the PC manufacturing world some of the Strengths are:

Brand name ( best Know and renowned computer brand in the world.

Direct to customers build model

No inventory build up(just in time inventory system)

Internet sales leadership

Latest technology facilities

Strong relationship with suppliers

Customization (greater part of dell systems are built to order)

Weaknesses

The company has a huge of products and components from many suppliers from all around the world. Many of these products in some occasions are not well fabricated. In many cases Dell had to recall computers production, because some components could overheat, causing electric shocks or fires.

High dependency on component suppliers (suppliers mainly determine the final price)

The organization is very dependant of his CEO Michael Dell.

Accounting practices problems

Employee lay off

Lack of R&D

Lack of retailing experience

Macro-environmental

Economy: currency fluctuation in foreign countries and international trades could affect the price of the product.

Technology: the stream of software and hardware innovation

Markets: expansion of the PC market around the world

Customers: changes in buyer behavior, and customer segmentation.

Competition: Firms are constantly seeking to create or copy dell's model (i.e HP, Toshiba etc)

External-Opportunities and Threats:

Opportunity

Significant opportunity for expansion in all parts of the world, especially in markets outside of the U. S.; in all customer segments; and in all products categories, ranging from home PCs to enterprise products such us network servers and workstations

Threat

PC Companies can math Dell's sales strategy while offering competitive process, respected customer service and technical support.

DELL SWOT Analysis

Strengths

* Brand name ( best Know and renowned